Australia has said it will join a China-led infrastructure bank as a founding member, contributing 930m Australian dollars ($718.5m; £455m) over five years.
The move will make Australia the sixth biggest shareholder of the Asian Infrastructure Investment Bank (AIIB).
More than 50 members have signed up to the lender, which is widely seen as a rival to the Western-led World Bank.
The US and Japan have refused to join, however.
Both countries have raised concerns over the bank’s standards of governance, while there are concerns in the US that the AIIB could be used by China to extend its political influence.
The Beijing-based lender will help finance construction of roads, ports, railways and other infrastructure projects in Asia. The UK, France, Germany and Iran are among its members.